• 2021-04-14
    A firm is expected to pay a dividend of $1.00 next year and the dividend is expected to grow at a constant rate of 4 percent over time. Some investors have required returns on investments in equity of 12 percent, some 10 percent, and some 8 percent. The market price of this firm’s stock will be slightly above _________.
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      Given Gitech's beta of 1.55 and a risk free rate of 8 percent, what is the expected rate of return assuming a 14 percent market return? A: 12.4% B: 14.3% C: 17.3% D: 20.4%

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      A preferred stock pays an annual dividend of $3.20. What is one share of this stock worth today if the rate of return is 11.75 percent?

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      Assume the following data: Risk-free rate = 4.0 percent; average risk premium = 7.7 percent. Calculate the required rate of return for the risky asset. A: 5.6 percent B: 7.6 percent C: 11.7 percent D: 30.8 percent

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      How much are you expected to give as a tip in the US? A: 15 percent of the bill. B: 50 percent of the bill. C: 20 percent of the bill. D: 12 percent of the bill.

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      You have $5,000 you want to invest for the next 45 years. You are offered an investment plan that will pay you 6 percent per year for the next 15 years and 10 percent per year for the last 30 years. How much will you have at the end of the 45 years? How much will you have if the investment plan pays you 10 percent per year for the first 15 years and 6 percent per year for the next 30 years?